Nordea Asset Management (NAM) has extended its range of ESG solutions tackling social and societal challenges with the launch of Article 9 Nordea 1 – Global Social Bond Fund.
The fund is managed by Thede Rüst and Anton Nykvist, the same team behind the Nordea 1 – Global Green Bond Fund. The duo will be supported by Nordea’s 27-strong Responsible Investments Team.
The fund qualifies for an Article 9 label as it invests in social bonds focused on sustainability objectives, adheres to principles of good governance, and abides by the ‘do no significant harm’ mandate.
The fund invests in labelled social bonds and debt issued by corporates that positively contribute to social and environmental objectives to create beneficial impact, as well as generate sustainable stakeholder value.
Portfolio manager Rüst said: “We are incredibly excited about the launch of Nordea 1 – Global Social Bond Fund, as debt markets play a crucial role in funding the projects vital for a sustainable and more equitable future.”
“The solution focuses on the ‘S’ in ESG, which is increasingly a focus area for investors. We cannot achieve a sustainable world without tackling the pressing social problems facing society today,” he added.
The majority of Nordea 1 – Global Social Bond Fund assets are invested in debt issued by government-related and supranational agencies, but it also invests in debt issued by financial institutions and corporates.
It is the fifth solution NAM has brought to market to address the ‘S’ in ESG – alongside its Global Green Bond, Global Social Empowerment, Global Climate and Social Impact and Global Gender Diversity funds.
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